How to Repay Education Loan: Are you a student who availed an educational loan for higher studies? Now it’s time to repay it and look for the process of how can you repay your educational loan. Then this article will help you a lot. Repaying the payment should always need to choose in a smart way.
Look into the below processes to repay your loan wisely. To know about those ways, then look into the article below.
List of Repayment Process for Education Loan
As students take an educational loan to complete their higher studies, once after a certain amount of time, they need to repay it. Paying off any kind of borrowed credit is easier when you plan it wisely. Here are the repayment ways for education loans.
- Use Opportunities While Studying
- Moratorium Period
- EMI (Easy Monthly Instalment)
- Education Loan Pre Payment
- Education Loan Part Payment
- Education Loan Extension
Use Opportunities While Studying
If you see nowadays many reels and posts became popular on how can we save money if we are studying abroad, students who must pay repayment of education loans can check for the job opportunities like part-time jobs they can repay their amount very easily.
Moratorium Period
To repay the student education loan, students can utilize the moratorium period, this period is nothing but, when we take an education loan, we do not need to pay the loan till we complete our studies and starts our first payment. If you are interested you can complete the loan in that period even if the interest rate of the loan will decrease.
Still, if you do not get any idea about the moratorium period, just checkout the link What is Moratorium Period in Education Loan .
EMI (Easy Monthly Instalment)
Another way to repay your education loan is the EMI process, this is the common repayment process. A fixed amount of money set by the applicant will be paid monthly without fail. And this EMi can be set by yourself based on your income.
You can set a small amount of EMI and a large amount but if you pay in a small amount you will need to pay more interest than normal. To reduce that interest, try to pay your EMI in large amounts if possible.
Student loan EMI = (annual interest on total disbursed loan amount/12) + principal amount adjustment.
Education Loan Pre Payment
Students who can able to pay their education loan before it starts can pay the education loan pre-payment prior to its tenure. And there are no prepayment charges too but some banks will involve some charges. So, applicants who like to repay the amount a step forward need to check with the bank.
Every one of us knows that we cannot get an education loan without interest, so check for banks that are giving the lowest rates on Which Bank Has the Lowest Interest Rate on Education Loan and by prepaying the loan you do not need to pay any interest.
Education Loan Part Payment
If the students have the available funds, then they can submit the consolidated sum of repayment to decrease the burden of interest rates. And this will not relate to fixed EMI students can repay higher than EMI up to any limit. But when you want to use this process to repay check with your respective bank about this process and then start.
Part-payment can be used to adjust the loan tenure or duration the lower the EMI rates for subsequent payments.
Education Loan Extension
Applicants who are about to repay the education loan can use this repayment process if they are unable to afford the loan, so they can extend their loan tenure or lower the EMI based on their affordability. So that the loan can repay in a better way.
An extension can be done in two ways you can decrease the EMI value or increase the loan tenure.
FAQs on How to Repay Education Loan
- How Do You Repay Education Loans?
Education loans can be repaid using EMIs and those EMIs can be paid by visiting the branch or requesting home collection service.
- What is the repayment period of the education loan?
The repayment period of the Education Loan is 12 to 15 years excluding the moratorium period.
- What will happen if I do not pay an education loan?
If you do not pay the education loan, you will receive notices and warnings from the lender.
- Who repays the education loan?
The student who applied for the education loan will repay it.
Key Takeaways
Hoping that the information we have shared on How to Repay Education Loan is very helpful if you are a student who took an education loan. Here are some of the ways to repay the process, check the one you like and pay.
For more other interesting articles like How to Get Education Loan From Government , and many more.
